The Giga Watt token crowdsale provides access to the crypto-mining operation founded by former Microsoft engineer Dave Carlson, who worked on digital assets with the multinational technology firm before the invention of Bitcoin. Giga Watt’s fundraising goal is $11.8 million.
“Giga Watt provides turnkey mining services and custom packages tailored to clients’ needs: full range of mining services from equipment sales, maintenance and repair to private blockchain servicing,” according to the project’s website.
Bitcoin’s open-source and decentralized design has been undermined by the centralization of the process for generating new bitcoins, called mining. With essentially one hardware supplier, Bitmain, there are not many avenues to explore for those interested in mining the digital currency.
BitFury, a North American mining equipment supplier, has a $1,000,000 purchase minimum, according to a public correspondence. The company can likely do this thanks to a lack of mining competition. In addition, the spaces’ miners, enjoying a monopoly on mining, have no reason to innovate in the space as then they’d have to update their own facilities in order to remain competitive.
Bitcoin’s lack of a free market for ASIC chips stifles innovation in what’s supposed to be an open-source system. Institutional investors largely ignored the mining space. And today, there is potential for bitcoin to fork – that is, implement a radical change – due to the scaling debate, in which miners have much say.
Today, Giga Watt is receiving a lot of attention thanks to its effort to try and shift the balance of power in Bitcoin mining. As the only U.S. business approaching mining at such scale, the company wants to serve miners of all sizes – large and small – so that everyone can have a vote via mining power. Giga Watt claims it found the least expensive electricity in the world (Wenatchee, Washington), which gives token holders a unique advantage.
The startup cites its team’s previous experience in the industry for its ability to obtain low electricity and maintenance fees. The facility advertises 2.8 cent per kW/h electricity costs and says 4.7 cents per kW/h and up. Giga Watt takes care of maintenance and services, making it a full-service mining provider.
Customers can send the facility their own Ethereum or Bitcoin miners or buy miners from them to host. You can pay for your miners with bitcoin, USD and ether. Monthly payments are deducted from daily bitcoin mining returns. Giga Watt’s facilities support not only any proof-of-work Bitcoin miner, but also GPU miners, another form of mining used in many digital currencies today.
Its token is called ‘the Watt token’ or ‘WTT’. Token holders will also be able to mine Ethereum, Litecoin, and additional cryptocurrencies in the future. Each ‘WTT’ represents one watt of mining capacity and one watt of electrical power, including the hardware, space and maintenance services.
Backed by real mining infrastructure, the Giga Watt token sale is unique insofar as it is offering an asset-based token. With ‘WTT’, you receive access to the company’s facility at cost so long as you hold the token. The company aims for its infrastructure to remain viable for decades. Here’s what you have to do:
- choose as few as one miner and hosting plan.
- place an order.
- follow your hardware from manufacturer to facility.
- connect your wallet and start mining bitcoin and/or GPU altcoins.
Giga Watt designed a ‘Mining Pod’ or ‘Giga Pod’,’ which houses more than 30 megawatts of mining power (30 million watts of power), which the startup claims is optimized for power density and air flow, as well as boasting a low cost of construction. They can be built in about two weeks.
“By tokenizing our mining infrastructure, Giga Watt is finally able to extend our huge economic advantage to anyone in the world, large or small, to run their own mining business and be successful by having our expert team build and manage it,” said Dave Carlson, founder and CEO of Giga Watt. “This is a move to decentralize the global balance of mining power and put it back in the hands of the little guy. The home miner built bitcoin, and I want anyone to succeed as a true participant in the explosive growth of cryptocurrency mining.”
Mr. Carlson added: “Thanks to the tokenization of its mining infrastructure, GigaWatt will finally be able to share its enormous economic advantages with wholesalers and retailers from around the world, which will enable them to create and develop a successful mining business with the assistance of our highly qualified team that will help this business build and manage it,” said Dave Carlson, founder of Giga Watt. “One of our goals is to decentralize the global concentration of forces in the field of mining and return control to the hands of individual miners.”
The company allows investors to participate in a crypto-asset mining operation with its WTT token, which represent rights to mine at Giga Watt’s mining facilities, rent-free, for 50 years. Token holders can use 1 watt’s worth of mining equipment power consumption to accommodate their own miners, or they can rent out the WTT tokens to other users.
The token sale is offered via Cryptonomos where participants can buy Giga Watt tokens (and other tokens) for the right to access Giga Watt’s infrastructure. The ICO launched June 2 and proceeds for sixty days thereafter until August 2.
Due to the experience of the team, its robust plan, working models and originality, we give Giga Watt an 7 out of 10. Giga Watt is the only full-service mining provider world wide, and, after much research and development, discovered a solution for cost-effective mining and innovative housing for miners.